Catalytic hydroconversion of hydrocarbonaceous material to liquids, employing a liquid transfer medium such as an organic solvent, is well known. In such a process, the hydrocarbonaceous material is slurried with a solvent and a catalyst, and is reacted in the presence of molecular hydrogen at elevated temperatures and pressures. See, for example, U.S. Pat. No. 4,485,008.
Catalytic hydroconversion techniques generally produce relatively high gas yields and aromatic distillates with high heteroatom content. These types of distillate compounds generally have sulfur, nitrogen, or oxygen in the ring structure. Extensive downstream upgrading may be required in order to convert the aromatic distillates to gasoline or fuel oils and to remove heteroatoms from the products. Upgrading is expensive, however, Therefore, it is economically desirable to employ a catalytic hydroconversion procedure which reduces gas production as well as the heteroatom content of the raw liquid product.